HomeMy WebLinkAboutResolution 2608 Providing for issuance of SID 650 bonds: 6-16-86
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RESOLUTION NO. 2608
RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 650;
AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF SPECIAL
IMPROVEMENT DISTRICT NO. 650 BONDS, IN THE AMOUNT OF $458,000.00 FOR
THE PURPOSE OF FINANCING THE ENGINEERING DESIGN, CONSTRUCTION,
INSTALLATION, INSPECTION AND ENGINEERING CERTIFICATION OF STREETS,
CURB AND GUTTER, SIDEWALKS, STORM DRAIN DETENTION BASIN IM-
PROVEMENTS AND ALL OTHER NECESSARY APPURTENANCES TO SERVE
PARTICULAR PROPERTIES WITHIN ANNIE SUBDIVISION, FIRST FILING.
I
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows:
Sect ion 1. Recitals. The City of Bozeman has created Special Improvement District
No.
650 (the District) for the purpose of financing the costs of accomplishing tht"! engineering
design, construction, installation, inspection and engineering certification of streets, curb and
gutter, sidewalks, storm detention improvements, including street and trench excavation, back-
fill, bedding material, gravel street base, asphalt street surfacing. concrete curb and gutter,
concrete sidewalks, stream crossing pipes, storm drain detention basin and pipes, and other
necessary appurtenances (the Improvements). The amount of bonds necessary to be sold to pay
the District's share of the Improvements is $458,000.00. The City Commission of the City of
Bozeman has full power and authority to issue the Bonds.
Section 2. Term of Bonds. Pursuant to the authority described above, this
City Com-
mission of the City of Bozeman shall issue and sell the Bonds drawn against the funds of
Special Improvement District No. 650 in an aggregate principal amount of $458,000.00. The
Bonds shall be dated as of September 1, 1986, and shall bear interest, payable semiannually on
January 1 and July 1 of each year commencing January 1, 1987, at the rate or rates designated
by the successful bidder at public sale herein authorized and as approved by this City
Commission. If issued as serial bonds, the Bonds shall mature on July 1 in each of the follow-
ing years and amounts:
Year
Amount
I
-
1987
$ 8,000.00
1988
10,000.00
1989
15,000.00
1990
20,000.00
1991
20,000.00
1992
20,000.00
1993
20,000.00
1994
20,000.00
1995
20.000.00
1996
20,000.00
1997
25,000.00
1998
25,000.00
1999
30.000.00
2000
30,000.00
2001
35,000.00
2002
35,000.00
2003
35,000.00
2004
35.000.00
2005
35,000.00
If issued as amortization bonds, the bonds will be issued as a single bond or divided into
several bonds, as the City Commission may determine at the time of sale, with principal of the
Bonds payable semiannually on each January 1 and July 1, commencing January 1, 1987. and,
subject to prior redemption and prepayment, continuing through July 1, 2005. Serial bonds
shall be in the denomination of $5,000 each or any integral multiple or fraction thereof of single
maturities (provided that the Bond representing principal installment number 1 shall be in the I
denomi nation of $3,000.) The Bonds, whether serial or amortization, shall be issued only as
fully registered bonds and shall be executed by the manual or facsimi Ie signatures of the City
Manager, Director of Finance and Clerk of the City Commission. Amortization bonds shall be
preferred.
c:~,:,ti"n 3. Notice of Sale. The Bonds shall be sold at a public competitive
sale which is
hereby called and shall be held at a regular meeting of the City Commission of the City of
COMMISSION RESOLUTION NO. 2608
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228
Bozeman on July 14,1986, at 2:00 o'clock p.m., M.D.T., in the Commission Room of the Municipal
Building, 411 East Main Street, Bozeman, Montana. The Clerk of the Commission is authorized
and directed to cause the notice of the sale to be published, as required by Sections 7-12-4204
and 7-7-4251, M.C.A., in the Bozeman Daily Chronicle, once a week for four (4) successive weeks
preceding the week which contains the date of sale, and in any other newspapers as may be
determined by the City Commission of the City of Bozeman. The bonds shall be combined for
sale with the bonds for Special Improvement District Nos. 649 and 651 in the best interests of
I the City of Bozeman and SID No. 650. The pooling of these bonds will facilitate their sale and
result in more advantageous terms for the sale, including reduced costs for issuance of the
bonds. The notice of sale attached hereto as Exhibit A (the Notice of Sale) contains further
terms and conditions for the sale of the Bonds which terms and conditions are hereby ratified
and made a part hereof. The Notice of Sale shall be in substantially the form set forth in
Exhibit A.
PASSED AND ADOPTED on this 16th day of June 1986.
JUDITH A. MATHRE, Mayor
ATTEST:
Clerk of the Commission
EXHIBIT A
I NOTICE OF SALE OF BONDS
of
$953,000.00 SPECIAL IMPROVEMENT DISTRICT NOS. 649, 650 AND 651
OF THE CITY OF BOZEMAN, MONTANA
NOTICE IS HEREBY GIVEN by the City Commission of the City of Bozeman, Montana, that the
Commission, at a regular meeting to be held on the 14th day of July 1986, at the hour of 2: 00
o'clock p.m., Mountain Daylight Time, at the Commission Room in the City Hall, 411 East Main
Street, Bozeman, Montana, will sell to the highest and best bidder for cash, either amortization
or serial bonds drawn against the funds of Special Improvement District No. 649, in the amount
of $448,000.00; Special Improvement District No. 650, in the amount of $458,000.00; and Extended
Special Improvement District No. 651, in the amount of $47,000.00; for the total aggregate prin-
cipal amount of $953,000.00 Bonds (the Bonds) for the purpose of financing the engineering de-
sign, construction, installation, inspection and engineering certification of sanitary sewer mains,
water mains, storm drainage and detention, streets, curb and gutter, sidewalks, street improve-
ments for a portion of Durston Road and a gravel walkway, and all other necessary appurtenances
to serve particular properties within Annie Subdivision, First Filing.
THE BONDS
Amortization bonds will be the first choice and serial bonds will be the second choice of the
City of Bozeman. If amortization bonds are sold and issued, the Bonds will be issued as a
I single bond or divided into several bonds, as the City of Bozeman may determine at the time of
sale, both principal and interest to be payable in equal semiannual installments on each January
1 and July 1, commencing January 1, 1987, and subject to prior redemption and prepayment,
continuing through July 1, 2005.
If serial bonds are issued and sold, the Bonds will be issued in the denomination of $5,000 each
or any integral multiple or fraction thereof of single maturities. The serial bonds wi II mature,
subject to prior redemption and prepayment, on July 1, in the following years and amounts:
COMMISSION RESOLUTION NO. 2608
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Year SID 649 SID 650
SID 651 Total
-
-
1987 $ 8,000.00 $ 8,000.00
$ 1,000.00 $ 17,000.00
1988 10,000.00 10,000.00 2,000.00
22,000.00
1989 15,000.00 15,000.00 2,000.00
32,000.00
1990 20,000.00 20,000.00 2,000.00
42,000.00
1991 20,000.00 20,000.00 2,000.00
42,000.00
1992 20,000.00 20,000.00 2,000.00
42,000.00
1993 20,000.00 20,000.00 2,000.00
42,000.00
1994 20,000.00 20,000.00 2,000.00
42,000.00
1995 20,000.00 20,000.00 2,000.00
42,000.00 I
1996 20,000.00 20,000.00 3,000.00
43,000.00
1997 25,000.00 25,000.00 3,000.00
53,000.00
1998 25,000.00 25,000.00 3,000.00
53,000.00
1999 25,000.00 30,000.00 3,000.00
58,000.00
2000 30,000.00 30,000.00 3,000.00
63,000.00
2001 30,000.00 35,000.00 3,000.00
68,000.00
2002 35,000.00 35,000.00 3,000.00
73,000.00
2003 35,000.00 35,000.00 3,000.00
73,000.00
2004 35,000.00 35,000.00 3,000.00
73,000.00
2005 35,000.00 35,000.00 3,000.00
73,000.00
$448,000.00 $458,000.00 $47,000.00
$953,000.00
The Bonds, whether amortization or serial bonds, wi II be issued as fully registered bonds, wi II
bear an original issue date and be registered as of September 1, 1986, and will bear interest elt
the rate or rates designated by the successful bidder at the sale. I nterest wi II be payable
semiannually on January 1 and July 1 of each year commencing January 1, 1987. The Bonds
wi II be issued as fully registered bonds only.
REDEMPTION
All bonds are subject to redemption and prepayment at the option of the City of Bozeman, in
order of registration, on any interest payment date whenever there is any balance in the par-
ticular District Fund after payment of interest due on all Bonds, either from the prepayment cf
special assessments levied in the District or from the transfer of surplus moneys in the
Construction Account. The Bonds shall not be callable from the proceeds of an issue of re-
funding bonds prior to the expiration of one-half of their term.
I
SECURITY
The Bonds are not general obligations of the City of Bozeman. The Bonds are payable from the
collection of special assessments which are levied against and become a lien on the real property
within each District. The assessments to be levied by the City of Bozeman will bear interest at
an annual rate equal to the sum of one-half of one percent per annum plus the average annual
interest rate borne by the Bonds.
The Bonds shall also be secured by the City of Bozeman's Special Improvement District Revolving
Fund (the Revolving Fund). The City of Bozeman will agree to make a loan from the Revolving
Fund to a District's Fund to make good any deficiency then existing in the I nterest and Bond
Account of the District's Fund and to provide funds for the Revolving Fund by levying a tax
or making a loan from the General Fund to the extent authorized by law. The City of Bozemc:n
has outstanding as of the date hereof $9,108,519.00 principal amount of Special Improvement
District Bonds. The City has a balance of ($37,142.99) in its Special Improvement District
Revolving Fund.
REGISTRAR AND PAYING AGENT
Principal of and interest on the bonds will be payable at the principal office of the Director of
Finance, City of Bozeman, Montana (the Bond Registrar and Paying Agent).
BIDS AND AWARD OF SALE
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Terms of Bid. Each bid must be for all but not less than all of the Bonds. All Bonds maturing
on the same date must bear basic interest from the date of issue until paid at a single, uniform
rate, expressed in integral multiples of 1/20 of 1 percent per annum. Supplemental or "B"
interest shall not exceed one percent per annum. No bid for less than par value with accrued
interest on the principal amount of the Bonds to the date of delivery of the Bonds will be
considered.
COMMISSION RESOLUTION NO. 2608
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Receipt of Bids and Award of Sale. Sealed bids for the Bonds will be received by the Clerk of
the Commission. of the City of Bozeman, Montana, until 2:00 p.m., Mountain Daylight Time, on
July 14, 1986. Each envelope must be marked as follows: "Bid for $953,000.00
Special Improve-
ment District Nos. 649, 650 and 651 Bonds" and must indicate the name and address of the bidder
or, in the case of a group of bidders, of the representative.
Basis of Award. The award, if any, will be made to the bidder whose bid results in the lowest
I net interest cost payable on the Bonds. The City of Bozeman reserves the right to reject any
and all bids and to waive any informality or irregularity in any and all bids.
Good Faith Check. Each bid must be accompanied by lawful money of the United States of America
or a cashier's check, certified check, bank money order or bank draft, in the amount of
$19,060.00 drawn and issued by a national banking association located in Montana or by any
banking corporation incorporated under the laws of Montana, payable to the City of Bozeman.
The bid security of the unsuccessful bidders will be returned immediately on award of the Bonds
to the successful bidder or after the rejection of all bids. The bid security of the successful
bidder will be deposited by the Director of Finance on the date of sale, and at the time of the
delivery of the Bonds such security will be applied against the purchase price for the Bonds or
will be retained as liquidated damages upon the failure of the successful bidder to take and pay
for the Bonds in accordance with the terms of its bid. No interest will be allowed on the bid
security.
Additional Information. Additional information regarding the Districts and the Bonds may be
obtained from the Clerk of the City Commission, City of Bozeman, P.O. Box 640, Bozeman, Montana
59715, telephone (406) 586-3321.
DELIVERY
Bonds. Delivery of the Bonds will be made payable therefor in immediately available funds
I within 45 days of the date of sale at Bozeman, Montana, or at such other location as the
purchaser shall request and the City of Bozeman shall approve. The charge of the delivery
agent will be paid by the purchaser. The cost of the printing of the bonds will be paid by the
District.
Closing Certificates and Opinions. At the time of delivery of the Bonds the Districts will
deliver to the successful bidder a legal opinion. The legal opinion wi II state that the Bonds are
valid and binding special obligations of the City of Bozeman, and the interest thereon is exempt
from federal and Montana state income tax. A copy of the legal opinion will be printed on the
reverse side of the Bonds at the request of the purchaser. The Districts will deliver a certifi-
cate stating that no litigation in any manner questioning the validity of the Bonds in then
pending, or to the best knowledge of the City threatened, along with other customary closing
certificates.
ROBIN L. SULLIVAN
Clerk of the Commission
State of Montana )
County of Gallatin : ss.
City of Bozeman )
I, Robin L. Sullivan, Clerk of the Commission of the City of Bozeman, do hereby certify
that the foregoing Notice was published at length in the Bozeman Daily Chronicle, a newspaper
I of general circulation printed and published in said City, in the issues dated the 20th and 27th
days of June and the 2nd and 9th days of July 1986, and due proof of such publication is on
file in my office.
IN WITNESS WHEREOF, I hereunto set my hand and affix the corporate seal of my office
this 5th day of August 1986.
Clerk of the City Commission
COMMISSION RESOLUTION NO. 2608